- who would like to see Verizon offer cable TV in Phila?
- Council Committee Passed the Freeze
- Carol Campbell Passes Away
- My first trip to the public library
- Fight digital exclusion
- What if half of Philadelphia didn't have roads?
- You know, let's not even worry about the City Commissioners office messing up voter registration processing
- Bold ideas to fix the budget
- Mayor Nutter's Town Hall Meeting Schedule
- City Releases Library Information to City Council
New Idea to Generate Higher Wages #1: Create New and Better Jobs Through an Expansion of Public Transportation
In an earlier post (check it out here) I proposed that YPP readers kick off 2006 right by researching, writing about and discussing new policy ideas that we think can help create a lot of decent paying, long-term and sustainable jobs. I hope a lot you of you will meet this challenge and that we can have a good debate and discussion to help take our city somewhere new.
I’ll start us off by presenting my idea (that has been discussed by many others before) to use an expansion of public transportation to create new jobs, improve the city’s neighborhoods and bridge the gap between all Philadelphians.
Click “read more” below to learn more.
Before I present my idea, I ask that you all be kind. I realize I am a huge dork.
My idea:
Use the capital budgets of our two local transit agencies to build new subway and light rail lines. Transit, particularly rail transit, has a proven track record across the country of moving commuters, shoppers and others quickly and cheaply around town. Trolley tracks and railroad ties are visual symbols that transit is available in a community which means that trolleys and trains tend to have higher ridership on the whole than buses (because people know they are there).
Additionally, communities with trolleys and trains often spur neighborhood development (look no further than the Bronx and Queens in NYC in the early 20th century and the green line in DC for evidence of this, not to mention West Philadelphia, our own beloved streetcar suburb. And the country’s fastest growing cities in the Pacific NW and the SW parts of the country have all started to make major ($10 billion plus) investments in rail transit.
Specifically for spurring growth via transit in Philly, these are the projects I have in mind:
1- Use rail lines to strengthen regional access to jobs and homes. We could expand access to the city and the burbs by supporting two plans that have already been proposed. The first, as proposed by SEPTA, is to expand the Rt. 100, Norristown High-Speed line from its current Norristown terminus to KOP. The second, as proposed by PATCO is to create a new commuter train into Gloucester county and parts of Cumberland county that can link with the current high-speed line.
2- Improve rapid transit access for Philadelphians in order to increase opportunities for good jobs and housing within the city . The first idea I have here is to create a light rail line that runs down the middle of Roosevelt Blvd from Frankford terminal up to the edge of the city. SEPTA has asked for funding to do a feasibility study of this already. Some have suggested running an extension of the Broad Street subway under the Boulevard, but light rail could run down the median for a lot cheaper. The second idea I’d like to suggest is a bit more out there, but has in many ways a larger impact: Build 2 new subway lines: one to run diagonally from Gray’s Ferry to 5th and Olney via Fitler Square, Rittenhouse, Old City, N. Libs, Fishtown, etc. The other line would run from Strawberry Mansion to Queen Village via Fairmount, the Parkway, the gayborhood, Society Hill, and South Street. This basically would be like adding an “X” to the “T” currently formed by the El and the Sub.
3- Create a Transit Tourist Destination. Build a new light rail line, using historic trolleys, that runs from 8th and Market to Delaware Ave to serve the movie theatre, Target, Ikea, new casinos etc. The terminus of the trolley could be at the current 8th and Market Disney hole. A hotel and SEPTA museum could be built on the spot which would be a great link for tourists between the historic areas and the rest of the city.
Who could implement my idea
:The SEPTA and the PATCO boards would be responsible for approving capital budgets that include new construction and line operation. SEPTA already includes some of these ideas (like the Blvd. light rail and the Rt. 100 expansion) but then doesn’t actually get the revenue needed to fund them.
So, in order for this idea to really take off, the Mayor and Council would have to allocate some funds and write some bonds too and then join influential city leaders in lobbying the state and the feds for more. And remember, capital budget money is easier to come by than operating revenue.
How much it would cost
The current SEPTA budget includes a cost projection for Rt. 100 expansion at about $3 billion.
PATCO is already talking about plans to building light rail along Delaware Ave and expanding commuter rail service into Gloucester county (a really good idea). They were just awarded $1.5 million by the state of NJ to create phase 2 of a feasibility analysis which will probably include a more accurate cost projection, but I would guess that $6-9 billion is not too far off.
A new light rail line along the Boulevard, based on the cost of rt. 15 restoration and also looking at light rail service costs in other parts of the country would probably require about $2 billion.
Finally, the most expensive of my proposals would be the two new subway lines. It is kind of hard to predict with accuracy the cost, especially as there is a lot of density in the neighborhoods these lines would go through, but I think any where from $8 to $15billion seems about right.
In total, for the transit expansion projects I propose above, we are talking anywhere from $20-$30 billion in capital spending. This may seem like a lot of money. However, because a lot it could be bonded, the actual cash outlay would be a lot less. A billion dollars a year for 30 years is a better way to think of the expense. And, as I will report in the next section, this level of transit infrastructure investment would have an astounding impact on our city’s economy which would pay for the $1 billion a year in debt service easily.
Define the quality of the jobs that would be created, as well as the number
It’s hard to predict exactly how many jobs the particular expansions I have proposed will create. However, SEPTA’s 2005 actual capital budget was about $500 million and SEPTA employed a little less than 10,000 people. So, I am proposing a 600% increase in the capital side of the budget which, simplistically, means about 6000 new jobs.
Now, that’s a gerrymandered figure as the dollar-to-job ratio doesn’t really hold true: 6,000 new jobs might be created but probably only about 2000 of them would be permanent (token booth operators, drivers, maintenance, mechanics and management). The other 4000 new jobs created would probably be in construction or manufacturing (someone has to dig tunnels, lay track, hang wire, build the trolleys and train cars, etc.).
The manufacturing and construction jobs would be less permanent obviously. However, at this scale of construction, some folks could literally work for 20 years building these new lines. And, since this size construction job is unusual and is all funded by public dollars, there are huge opportunities to create apprentice programs for people of color and women. Even though the jobs they get might not last forever, this would be a chance to get a whole new generation of building trades workers who aren’t as white and suburban as the current crop.
In terms of manufacturing jobs, there are no large traction builders left in the city. We used to serve as the center of the transit world when both Baldwin Locomotive company in SW Philly and the Budd Company in Hunting Park and eventually the Northeast built trains and engines for the world over.
However, again, because of the scale, the city could contract with an outside company but require that a plant be built here to employ as many Philadelphians as possible in constructing the literally thousands of train cars and trolleys, as well as track, this project would require.
Who will benefit from this idea? Will all Philadelphians benefit?
.The number of jobs created would bring in something like $120 million a year in additional wage tax and about $250 million in additional BPT just from the jobs created by SEPTA.
Freeing the roads of cars will make shipping goods into and out of Philadelphia even more attractive (improving infrastructure) than our central location already makes it for distribution companies. Making it easier and more convenient to work in Philadelphia makes our city all the more desirable to large corporations looking to relocate and helps the ones we already have to decide to stay.
Getting people off the road and onto trains and trolleys make commuting more relaxing and is a natural way to build community. The result is more people in the workforce, and improved communication and relationships in neighborhoods.
Add into this all of the other higher-wage jobs that Philadelphians will have access to in the burbs (not to mention the wage taxes derived from those commuting into the city) which will bring more wage tax revenue into city coffers.
New construction of housing as well as the increased sales of o in short, existing stock that will be the result of more transit development also bring revenue into both the city and the state.
Increasing the quality of the experience for tourists in Philadelphia means that a visitor is more likely to return or say good things about the city to friends. San Francisco is an example of a city that has very effectively used transit (ironically, via its former Philadelphia trolleys) to lure tourists in. The result of more tourists in Philadelphia is more money for restaurants and hotel owners, it means more hotel room taxes for the city and it means that more and more people around the country think of Philadelphia as a place to vacation.
When you tally up all the benefits of a careful expansion of public transit, $1 B in debt service a year to the bonds that fund all of this new construction becomes a much more manageable portion of the city budget. And, clearly the investment in the future of the city will reap rewards for literally the next 100 years.
And, who benefits? All of us do.
A note about math: calculations of tax, number of jobs created and costs of construction are all heavily estimated. This sure isn’t my expertise, so please be kind in your reaction to these numbers as they are meant to imply a kind of thinking rather than a precise cost estimate.











And you wanted empirical evidence about BPT Reform?!
Ray writes : "A note about math: calculations of tax, number of jobs created and costs of construction are all heavily estimated. This sure isn’t my expertise, so please be kind in your reaction to these numbers as they are meant to imply a kind of thinking rather than a precise cost estimate."
:)
A Philly-philes dream... a subanite's nightmare?
Ray,
I love it the subway-X extension.
I think that your estimates of job creation are extremely conservative since they account mostly for direct jobs involved in construction and operations. I would triple that estimate easily.
Even if the costs are triple your estimates, are they probably would be, it'd still be cheaper to do a substantial project now than in twenty or thirty years. The environmental benefits would be substantial.
A billion dollars a year is a lot of money. The total city general operating budget is around 3 billion dollars? Where are you going to get that money? The Reading Terminal Light rail had much more to offer suburbanites and that couldn't get support.
Thinking Very Locally Here
I live in Far Northeast Philly and take SEPTA quite a bit - we have a car but my wife is the driver in the family. I would love to see more public transit linking this area to the rest of the city. Right now we just have the R7 line that runs through Bucks County and then down to Center City. Everything else funnels to Frankford Terminal and the El.
I will say that my experience with the R7 makes me a little skeptical of the light-rail Boulevard idea. My feeling is that the bus network, which is really the bulk of SEPTA, doesn't connect very well with the Regional Rail system. There are only two buses that stop at the Torresdale rail station, and they do so once or twice an hour. Not to mention, the tickets and passes are more expensive. I wonder if an extension of the Broad Street Line wouldn't get more use and provide more benefit. But that would be an issue for the feasibility study.
I think that what you've laid
I think that what you've laid out here are some good ideas. I'd encourage you to cross-post this over at www.thenextmayor.com, which does not seem to be getting a ton of similarly helpful policy suggestions.
Funding
The idea of a greatly expanded rail system is a good one. In Minneapolis/St. Paul, they put in a light rail that has been so popular, and exceeded ridership expectations (amid great, great controversey) that they are now deciding where they want to build the next.
A few thoughts:
I have zero idea about any numbers. It does strike me that 1 billion in debt service a year would bankrupt Philadelphia. There is no way Philly could by itself afford to do this, nor should it, especially since 3 billion of the dollars you propose is a suburban expenditure. So, we would have to figure out a way to get the counties to chip in. Then, there are the feds, who generally are supposed to provide a certain percentage of mass transit costs (I think it is 20 percent).
The expansion of a subway system is also a good one, but, I think the costs in digging a subway under the most densly populated areas of the City will be prohibitively expensive. I think, potentially, it could be cheaper, even if you had to dig some new tunnels, to haave it above ground whenever possible. So, for that, you would have to consider which roads are large enough to handle two tracks down the middle- the parkway, spring garden street, the boulevard, Washington Ave and bunch of others all are wide enough. Downtown, you a lot harder pressed, because the wider streets that would accomplish what is needed are those streets which already have our subway and el underneath them. I guess, just pure politics, and forgetting for a second the money involved- do you think that people in Rittenhouse, Society Hill, the Gayborhood and anywhere else with vocal leadership and deep pockets, would stand for years of loud demolition, and closed streets?
The idea of new light rail though, generally, is a good one. And expanding it downtown any beyond is intriguing. The question of course, is feasibility, both in terms of cost, and politics.
Be prepared when the Midwest Congress Reps come running
Los Angeles which is debating extending one of its subway lines has encountered some obstacles as it tries to turn the plan into reality. Certainly, there is some question as to whether the investment in building a subway would be cost effective. For more insight, check out this article on transit in L.A. at reason.org: http://reason.org/commentaries/balaker_20051219.shtml
In Quito, Ecuador, where I lived for several years, they had arguably one of the most sophisticated eco-trolley systems in the world. It was damned expensive to build and was world-bank funded. The system is beautiful and more expensive than the regular private bus system but is jammed every day. Trollies have their own lanes running down the middle some of the biggest streets in town. There were elevated platforms on islands where people could enter and exit in the middle of the street. Certainly, I think the system would work in a few places in Philadelphia. Still, all things considered, I’d rather have a subway or elevated train that doesn’t have to stop at red lights and the like.
If you wanted me to give you a really radical critique of the problem with issuing bonds, I’d share with you the theory that municipal bonds are essentially a tool to transfer wealth from the middle class to the wealthy. One way that really wealthy people avoid paying taxes is by converting significant amounts of their wealthy into low risk municipal bonds and profit off the annual tax free interest. While certainly it is worth issuing bonds to improve and expand public transportation, I think that sometimes the best way government can improve the lives of people it serves is to live within its means and pay as it goes.
I think there are several elements worth noting in putting together a coalition that would support expanded public transportation. One issue is that GM may be entering bankruptcy in the next year. Now, it is possibly that they will avoid doing so but if the company does hit Chapter 13, you can bet the politicians loaning them money to assist. There is, however, a potential pro quid quo that could be mutually beneficial to our region and GM employees: tell GM that the government intends to invest in ten or twenty regional public transportation systems and is willing to have GM build the vehicles. That would be a sustainable business model in the long run since they aren’t going to build better cars than the Japanese. It would also be an ironic turn of events for the company that destroyed our public transportation systems.
a specific line proposal
A light rail/trolley line from Fishtown/Spring Garden St (access to Market/Frankford El) down Columbus/Delaware Ave, then West to the Sports Complex area (possibly the Navy Yard).
The traffic situation getting to/from events at the sports complex is already horrible, plus there are going to be many more residential units going up along the river and in the navy yard in the next decade. And probably a casino somewhere near Penns Landing.
Giving all of these residents, event attendees and visitors a way to move from place to place quickly, cheaply and without their cars is vitally important to that corridor.
Just imagine a few years from now: The Phillies host an All Star Game in their new ballpark (a week long event including at least two-three days of events at the ballpark itself) plus a brand spanking new casino at Penns Landing (I'm not saying I support that, just that it's a distinct possibility). A light rail/trolley line allows people to quickly move between those two areas, without getting on our highways, neighborhood streets, or even needing to loop through center city.
Delaware Ave already has vast stretches with rails, and the parts that don't now, used to.
the difference
i am proposing that the people who read this blog analyze different ideas together, pick a few they like and then ask the mayor and Council to study those ideas and some up with precise estimates. Good research costs money which I sure don't have.
the pro-tax reform movement has had the money to fund its work and, if it wanted, could pay for research into the empirical basis of support for BPT reform.
so, this blog post and the ideas it it represent a very early step in a process that will result in well researched ideas. i hope YPP readers will support this kind of discussion in the spirit in which it is intended.
clarify and agree
i am happy there's interest in this idea so far and that mike and I agree for once ;)
a billion is a lot per year, though not all of that would need to come from the city. some could be paid for by new revenue and some could come from a post-bush president (god-willing) and some from the state.
for the part that does come from the city, i think taxpayers (individuals and businesses) are willing to pay if they see the benefit.
in answer to dave- most of the plans I have seen proposed for Blvd. light rail include running a rail line on a dedicated way down the middle- so you wouldn't contend with traffic. i agree that a subay would be cool it's just a lot more exspensive.
thanks!
thanks kati. do you have a similar post up your sleeve in relationship to ways the city could create jobs and wages in the healthcare field?
i'm a dreamer
so, generally the purpose of my post was to illustrate the fact that there are other ways for the city to spend money to spur economic development, job creation and wage increases other than the scant few ideas proposed in the past few years.
so i am glad to hear that folks agree with me that a massive investment in transit construction could spur growth and create an exponential number of new job and wage opportunities.
if we're all on board with that idea, let's leave the details for later. the specific formula of development i laid out was really just one option. SEPTA's own capital budget that was released this year as literally hundreds of millions of dollars worth of other projects that they would like to complete in the next 15 years, so it doesn't have to be 2 subways and a trolley per se.
In terms of the subway idea though, one of the reasons I proposed building new subways to connect CC and surrounding neighborhoods better than we do now is that I see transit as being a more effective way than anything else of keeping and continuing to attract young people. as someone without a car who does spend a lot of time downtown, i will tell you that inter-CC transit sucks.
Diagonals, people! How hard is it to think in terms of diagonals?
In terms of the money, Dan is definitely right to point out the suburban obligation. However, this is a big problem. Already the city pays for a disproportionate share of the costs of the regional rail system whose rider ship has got to be at least half, if not more suburban.
anyway, who is writing new policy idea #2?
you don't need space for two rails
you can have them run in parallel like the bus lines do (e.g., up 11th and down 12th) and thus fit into the existing traffic with minimal crisis...
acm
"Never doubt that a small group of thoughtful committed citizens can change the world. Indeed, it is the only thing that ever has."
— Margaret Mead
Options for Transit Improvements
I am glad to see Ray Murphy and others putting forward the idea that the expansion of our transit system is an excellent way to spur economic growth in the city.
I have been exploring some of these ideas with some other people interested in transit issues. I hope that we will present a variety of options and their costs a little later in the year.
Certainly the Roosevelt Boulevard line is one plausible route. At one time there was a lot of opposition to this idea in the Northeast. I have been working with some liberal activists in the Northeast who tell me that the idea can be sold there and who are prepared to get working to sell it. My understanding is that there already is a tunnel extending the Broad Street Line up the Roosevelt Boulevard to about the old Sears Tower. This may be a local urban legend, but I have heard it from people who should know. The line could then emerge from the tunnel and run up the median of the Boulevard.
Another idea I floated here a few months ago is converting our existing region rail lines to light rail which would allow us to run them every 15 minutes, allow us to reopen closed stations and open new stations in the city, and also allow us to run express trains to the suburbs. The cost of this project would be about $400 million. This, of course benefits the suburbs as well as the city. But we need to be thinking about economic development in the region as a whole. The economy of the city has not been great. That is in no small part because the economy of the region has not been great compared to many other regions. One of our regional problems is an inadequate transportation system. Economically strong regions need urban cores that become or remain their economic center. Only when there is a strong urban core does the region as a whole benefit from the comparative advantage of city life: close connections between businesses and their suppliers, their financiers and lawyers, and their researchers in the universities and their potential workers both in and outside the universities. Center city will be the location of choice for many businesses if it easy and cheap for people to get there from both city neighborhoods and the suburbs.
When we start thinking about converting regional rail to light rail and building new trolley lines, we should look at some European models. In Munich, for example, has trains that run on both heavy rail lines from the suburbs into the city and on trolley lines in the city.
Of course all of our rail lines should provide free wi-fi access. This can be found in Europe now.
While we transit advocates loves rail, we should also be looking at ways to improve bus service and the integration of bus service and rail service. Buses transit can be made much better. We should start with real time information at bus stops about when our bus is coming, which SEPTA could easily provide if it retrofits its old buses with global positioning devices. (New buses already have this, I believe.) Even better, in some European cities, global positioning systems together with computer mapping and routing systems allow buses to vary their routes. Imagine using your computer or phone to order a SEPTA bus to be rerouted down your street so that it picks you up in ten minute and takes you to the nearest rail line. Or imagine getting off at a train station or subway stop, flashing your electronic ticking card—that has your home destination—at a terminal and then looking up at an electronic display to see which of the five waiting buses can drop you at a corner near your house. Systems of this sort would be useful in many parts of the city and in the suburbs. They can be found now in Europe.
Of course all these ideas require advanced electronic ticketing systems, which SEPTA could install for no more than $60 to 80 million. Such systems have many other advantages. They would allow people to get off and then back on a train or bus on their way home at minimal additional cost. (I have been trying for years to get SEPTA to do this on the 23 line so as to strengthen the Germantown Avenue commercial strip.) They would allow SEPTA to more easily vary pricing at different times of the day. They would make it easier for SEPTA to track ridership and thus adjust its service to changing demands.
How do we pay for all of this? I think we need a dedicated tax source and then have to borrow on the revenues it raises. I have some doubts about whether the city can borrow the kinds of money we are talking about at reasonable rates without a dedicated tax source. Dedicated funding from the state would be a good idea, although we may need this money just to keep our current system from collapsing. What do you all think of a regional tax? Sharing the burden and the benefits of transit improvements might finally help us begin to think about economic development with the whole region in mind. And it would be one stop toward the kind of tax reform we really need.
Where Do Riders Get The Train?
I figure the light rail would not be worrying about traffic. My question is more about how do you get to the station to get the train. There are lots of buses that will drop me off at Frankford Terminal, versus very few that will drop me off at Torresdale Station.
Plus, how often would a light rail run as opposed to a subway? Which would carry more people? The subway might be more expensive, but could it possibly have a higher return?
This is just armchair speculating, of course. I would just hope that a feasibility study would at least consider both option so we can have a more informed discussion.
wasn't there a study last year...
...showing that educational and health institutions in the area were supporting an ever higher percentage of the job growth already? not to discourage more, but I suspect we need more job diversity than that, especially with the educational disparities in the city...
acm
"Never doubt that a small group of thoughtful committed citizens can change the world. Indeed, it is the only thing that ever has."
— Margaret Mead
Duh!
Good point. I don't know what I was thinking.
It will probably involve more cost though.
expense isn't the only barrier to subway
looking at Ray's subway ideas, i just want to point out that it's not just the expense of digging that's a problem, it's the problems with existing underground structures, pipe mains, and even cemeteries (how the Revolutionary War dead under Washington Sq. Park were found involved an attempted subway spur). finding a path that's in any way possible is a nontrivial undertaking, which should be a warning about how much civic commitment would be needed to make it happen...
acm
"Never doubt that a small group of thoughtful committed citizens can change the world. Indeed, it is the only thing that ever has."
— Margaret Mead